Supplemental Equity and Comprehensive Income Information |
NOTE 4. Supplemental Equity and Comprehensive Income Information Consolidated Statement of Changes in Equity Three months ended September 30, 2013 | | | | 3M Company Shareholders | | | (Millions) | | Total | | Common Stock and Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Accumulated Other Comprehen-sive Income (Loss) | | Non-controlling Interest | Balance at June 30, 2013 | | $ | 18,319 | | $ | 4,252 | | $ | 31,716 | | $ | (12,926) | | $ | (5,166) | | $ | 443 | | | | | | | | | | | | | | | | | | | | | Net income | | | 1,245 | | | | | | 1,230 | | | | | | | | | 15 | Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | Cumulative translation adjustment | | | 284 | | | | | | | | | | | | 286 | | | (2) | Defined benefit pension and post-retirement | | | | | | | | | | | | | | | | | | | | plans adjustment | | | 92 | | | | | | | | | | | | 92 | | | ― | Debt and equity securities - unrealized gain (loss) | | | 2 | | | | | | | | | | | | 2 | | | ― | Cash flow hedging instruments - unrealized | | | | | | | | | | | | | | | | | | | | gain (loss) | | | (24) | | | | | | | | | | | | (24) | | | ― | Total other comprehensive income (loss), net | | | | | | | | | | | | | | | | | | | | of tax | | | 354 | | | | | | | | | | | | | | | | Dividends paid | | | (431) | | | | | | (431) | | | | | | | | | | Stock-based compensation, net of tax impacts | | | 66 | | | 66 | | | | | | | | | | | | | Reacquired stock | | | (1,570) | | | | | | | | | (1,570) | | | | | | | Issuances pursuant to stock option and | | | | | | | | | | | | | | | | | | | | benefit plans | | | 269 | | | | | | (103) | | | 372 | | | | | | | Balance at September 30, 2013 | | $ | 18,252 | | $ | 4,318 | | $ | 32,412 | | $ | (14,124) | | $ | (4,810) | | $ | 456 | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2013 | | | | | 3M Company Shareholders | | | (Millions) | | Total | | Common Stock and Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Accumulated Other Comprehen-sive Income (Loss) | | Non-controlling Interest | Balance at December 31, 2012 | | $ | 18,040 | | $ | 4,053 | | $ | 30,679 | | $ | (12,407) | | $ | (4,750) | | $ | 465 | | | | | | | | | | | | | | | | | | | | | Net income | | | 3,605 | | | | | | 3,556 | | | | | | | | | 49 | Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | Cumulative translation adjustment | | | (393) | | | | | | | | | | | | (334) | | | (59) | Defined benefit pension and post-retirement | | | | | | | | | | | | | | | | | | | | plans adjustment | | | 268 | | | | | | | | | | | | 268 | | | ― | Debt and equity securities - unrealized gain (loss) | | | (2) | | | | | | | | | | | | (2) | | | ― | Cash flow hedging instruments - unrealized | | | | | | | | | | | | | | | | | | | | gain (loss) | | | 8 | | | | | | | | | | | | 8 | | | ― | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | | | | net of tax | | | (119) | | | | | | | | | | | | | | | | Dividends paid | | | (1,307) | | | | | | (1,307) | | | | | | | | | | Sale of subsidiary shares | | | 8 | | | 7 | | | | | | | | | | | | 1 | Stock-based compensation, net of tax impacts | | | 258 | | | 258 | | | | | | | | | | | | | Reacquired stock | | | (3,609) | | | | | | | | | (3,609) | | | | | | | Issuances pursuant to stock option and | | | | | | | | | | | | | | | | | | | | benefit plans | | | 1,376 | | | | | | (516) | | | 1,892 | | | | | | | Balance at September 30, 2013 | | $ | 18,252 | | $ | 4,318 | | $ | 32,412 | | $ | (14,124) | | $ | (4,810) | | $ | 456 |
Three months ended September 30, 2012 | | | | 3M Company Shareholders | | | (Millions) | | Total | | Common Stock and Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Accumulated Other Comprehen-sive Income (Loss) | | Non-controlling Interest | Balance at June 30, 2012 | | $ | 16,873 | | $ | 3,963 | | $ | 29,465 | | $ | (12,010) | | $ | (5,012) | | $ | 467 | | | | | | | | | | | | | | | | | | | | | Net income | | | 1,180 | | | | | | 1,161 | | | | | | | | | 19 | Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | Cumulative translation adjustment | | | 412 | | | | | | | | | | | | 401 | | | 11 | Defined benefit pension and post-retirement | | | | | | | | | | | | | | | | | | | | plans adjustment | | | 96 | | | | | | | | | | | | 96 | | | ― | Debt and equity securities - unrealized gain (loss) | | | 3 | | | | | | | | | | | | 3 | | | ― | Cash flow hedging instruments - unrealized | | | | | | | | | | | | | | | | | | | | gain (loss) | | | (36) | | | | | | | | | | | | (36) | | | ― | Total other comprehensive income (loss), net | | | | | | | | | | | | | | | | | | | | of tax | | | 475 | | | | | | | | | | | | | | | | Dividends paid | | | (408) | | | | | | (408) | | | | | | | | | | Stock-based compensation, net of tax impacts | | | 44 | | | 44 | | | | | | | | | | | | | Reacquired stock | | | (316) | | | | | | | | | (316) | | | | | | | Issuances pursuant to stock option and | | | | | | | | | | | | | | | | | | | | benefit plans | | | 293 | | | | | | (68) | | | 361 | | | | | | | Balance at September 30, 2012 | | $ | 18,141 | | $ | 4,007 | | $ | 30,150 | | $ | (11,965) | | $ | (4,548) | | $ | 497 | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2012 | | | | 3M Company Shareholders | | | (Millions) | | Total | | Common Stock and Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Accumulated Other Comprehen-sive Income (Loss) | | Non-controlling Interest | Balance at December 31, 2011 | | $ | 15,862 | | $ | 3,776 | | $ | 28,348 | | $ | (11,679) | | $ | (5,025) | | $ | 442 | | | | | | | | | | | | | | | | | | | | | Net income | | | 3,507 | | | | | | 3,453 | | | | | | | | | 54 | Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | Cumulative translation adjustment | | | 211 | | | | | | | | | | | | 210 | | | 1 | Defined benefit pension and post-retirement | | | | | | | | | | | | | | | | | | | | plans adjustment | | | 291 | | | | | | | | | | | | 291 | | | ― | Debt and equity securities - unrealized gain (loss) | | | 4 | | | | | | | | | | | | 4 | | | ― | Cash flow hedging instruments - unrealized | | | | | | | | | | | | | | | | | | | | gain (loss) | | | (28) | | | | | | | | | | | | (28) | | | ― | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | | | | net of tax | | | 478 | | | | | | | | | | | | | | | | Dividends paid | | | (1,228) | | | | | | (1,228) | | | | | | | | | | Stock-based compensation, net of tax impacts | | | 231 | | | 231 | | | | | | | | | | | | | Reacquired stock | | | (1,483) | | | | | | | | | (1,483) | | | | | | | Issuances pursuant to stock option and | | | | | | | | | | | | | | | | | | | | benefit plans | | | 774 | | | | | | (423) | | | 1,197 | | | | | | | Balance at September 30, 2012 | | $ | 18,141 | | $ | 4,007 | | $ | 30,150 | | $ | (11,965) | | $ | (4,548) | | $ | 497 |
Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, 2013 | | | | | | | | | | | | | | | | (Millions) | | Cumulative Translation Adjustment | | Defined Benefit Pension and Postretirement Plans Adjustment | | Debt and Equity Securities, Unrealized Gain (Loss) | | Cash Flow Hedging Instruments, Unrealized Gain (Loss) | | Total Accumulated Other Comprehen-sive Income (Loss) | Balance at June 30, 2013, net of tax | | $ | (390) | | $ | (4,779) | | $ | (6) | | $ | 9 | | $ | (5,166) | Other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax: | | | | | | | | | | | | | | | | | Amounts before reclassifications | | | 240 | | | ― | | | 3 | | | 20 | | | 263 | | Amounts reclassified out | | | ― | | | 144 | | | ― | | | (58) | | | 86 | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax | | | 240 | | | 144 | | | 3 | | | (38) | | | 349 | Tax effect | | | 46 | | | (52) | | | (1) | | | 14 | | | 7 | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | net of tax | | | 286 | | | 92 | | | 2 | | | (24) | | | 356 | Balance at September 30, 2013, net of tax | | $ | (104) | | $ | (4,687) | | $ | (4) | | $ | (15) | | $ | (4,810) | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2013 | | | | | | | | | | | | | | | | (Millions) | | Cumulative Translation Adjustment | | Defined Benefit Pension and Postretirement Plans Adjustment | | Debt and Equity Securities, Unrealized Gain (Loss) | | Cash Flow Hedging Instruments, Unrealized Gain (Loss) | | Total Accumulated Other Comprehen-sive Income (Loss) | Balance at December 31, 2012, net of tax | | $ | 230 | | $ | (4,955) | | $ | (2) | | $ | (23) | | $ | (4,750) | Other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax: | | | | | | | | | | | | | | | | | Amounts before reclassifications | | | (344) | | | ― | | | (3) | | | (92) | | | (439) | | Amounts reclassified out | | | ― | | | 431 | | | ― | | | 104 | | | 535 | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax | | | (344) | | | 431 | | | (3) | | | 12 | | | 96 | Tax effect | | | 10 | | | (163) | | | 1 | | | (4) | | | (156) | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | net of tax | | | (334) | | | 268 | | | (2) | | | 8 | | | (60) | Balance at September 30, 2013, net of tax | | $ | (104) | | $ | (4,687) | | $ | (4) | | $ | (15) | | $ | (4,810) |
Three months ended September 30, 2012 | | | | | | | | | | | | | | | | (Millions) | | Cumulative Translation Adjustment | | Defined Benefit Pension and Postretirement Plans Adjustment | | Debt and Equity Securities, Unrealized Gain (Loss) | | Cash Flow Hedging Instruments, Unrealized Gain (Loss) | | Total Accumulated Other Comprehen-sive Income (Loss) | Balance at June 30, 2012, net of tax | | $ | (77) | | $ | (4,960) | | $ | (5) | | $ | 30 | | $ | (5,012) | Other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax: | | | | | | | | | | | | | | | | | Amounts before reclassifications | | | 380 | | | ― | | | 4 | | | 21 | | | 405 | | Amounts reclassified out | | | ― | | | 153 | | | ― | | | (78) | | | 75 | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax | | | 380 | | | 153 | | | 4 | | | (57) | | | 480 | Tax effect | | | 21 | | | (57) | | | (1) | | | 21 | | | (16) | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | net of tax | | | 401 | | | 96 | | | 3 | | | (36) | | | 464 | Balance at September 30, 2012, net of tax | | $ | 324 | | $ | (4,864) | | $ | (2) | | $ | (6) | | $ | (4,548) | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2012 | | | | | | | | | | | | | | | | (Millions) | | Cumulative Translation Adjustment | | Defined Benefit Pension and Postretirement Plans Adjustment | | Debt and Equity Securities, Unrealized Gain (Loss) | | Cash Flow Hedging Instruments, Unrealized Gain (Loss) | | Total Accumulated Other Comprehen-sive Income (Loss) | Balance at December 31, 2011, net of tax | | $ | 114 | | $ | (5,155) | | $ | (6) | | $ | 22 | | $ | (5,025) | Other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax: | | | | | | | | | | | | | | | | | Amounts before reclassifications | | | 211 | | | ― | | | 5 | | | 22 | | | 238 | | Amounts reclassified out | | | ― | | | 460 | | | 1 | | | (66) | | | 395 | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | before tax | | | 211 | | | 460 | | | 6 | | | (44) | | | 633 | Tax effect | | | (1) | | | (169) | | | (2) | | | 16 | | | (156) | Total other comprehensive income (loss), | | | | | | | | | | | | | | | | | net of tax | | | 210 | | | 291 | | | 4 | | | (28) | | | 477 | Balance at September 30, 2012, net of tax | | $ | 324 | | $ | (4,864) | | $ | (2) | | $ | (6) | | $ | (4,548) |
Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include impacts from items such as net investment hedge transactions. Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income. Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M | | | | | | | | | | | | | | | | | | | | | Amount Reclassified from | | | | | | Accumulated Other Comprehensive Income | | | (Millions) | | Three months ended Sept. 30, | | Nine months ended Sept. 30, | | Location on Income Statement | Details about Accumulated Other Comprehensive Income Components | | 2013 | | 2012 | | 2013 | | 2012 | | Gains (losses) associated with, defined benefit pension and postretirement plans amortization | | | | | | | | | | | | | | | | Transition asset | | $ | ― | | $ | ― | | $ | 1 | | $ | 1 | | See Note 8 | | Prior service benefit | | | 19 | | | 21 | | | 59 | | | 63 | | See Note 8 | | Net actuarial loss | | | (163) | | | (174) | | | (491) | | | (524) | | See Note 8 | Total before tax | | | (144) | | | (153) | | | (431) | | | (460) | | | Tax effect | | | 52 | | | 57 | | | 163 | | | 169 | | Provision for income taxes | Net of tax | | $ | (92) | | $ | (96) | | $ | (268) | | $ | (291) | | | | | | | | | | | | | | | | | | | Debt and equity security gains (losses) | | | | | | | | | | | | | | | | Sales or impairments of securities | | $ | ― | | $ | ― | | $ | ― | | $ | (1) | | Selling, general and administrative expenses | Total before tax | | | ― | | | ― | | | ― | | | (1) | | | Tax effect | | | ― | | | ― | | | ― | | | ― | | Provision for income taxes | Net of tax | | $ | ― | | $ | ― | | $ | ― | | $ | (1) | | | | | | | | | | | | | | | | | | | Cash flow hedging instruments gains (losses) | | | | | | | | | | | | | | | | Foreign currency forward/option contracts | | $ | 1 | | $ | 22 | | $ | (8) | | $ | 31 | | Cost of sales | | Foreign currency forward contracts | | | 59 | | | 58 | | | (94) | | | 45 | | Interest expense | | Commodity price swap contracts | | | (1) | | | (1) | | | (1) | | | (9) | | Cost of sales | | Interest rate swap contracts | | | (1) | | | (1) | | | (1) | | | (1) | | Interest expense | Total before tax | | | 58 | | | 78 | | | (104) | | | 66 | | | Tax effect | | | (20) | | | (29) | | | 38 | | | (25) | | Provision for income taxes | Net of tax | | $ | 38 | | $ | 49 | | $ | (66) | | $ | 41 | | | Total reclassifications for the period, net of tax | | $ | (54) | | $ | (47) | | $ | (334) | | $ | (251) | | |
Sale of Subsidiary Shares In March 2013, 3M sold shares in 3M India Limited, a subsidiary of the Company, in return for $8 million. The noncontrolling interest shares of this subsidiary trade on a public exchange in India. This sale of shares complied with an amendment to Indian securities regulations that required 3M India Limited, as a listed company, to achieve a minimum public shareholding of at least 25 percent. As a result of this transaction, 3M's ownership in 3M India Limited was reduced from 76 percent to 75 percent. The $8 million received in the first quarter of 2013 was classified as other financing activity in the consolidated statement of cash flows. Because the Company retained its controlling interest, the sales resulted in an increase in 3M Company shareholder's equity of $7 million and an increase in noncontrolling interest of $1 million. |